JOURNAL ENTRY FOR CASH DEPOSIT INTO BANK

Dear reader, are you looking to know how to pass a journal entry for cash deposited into bank? Then you came to the right article. In this article, you will get to know about how to pass the journal entry for depositing cash into bank. This article is written after referring 11 blogs on this topic.

Before passing the journal entry, you should know a few things: every company deposit excess cash into bank. Depositing cash into bank ensure the safety of the money. It’s one of the transactions which took place on everyday basis in all organizations. You can say it’s one kind of CONTRA entry because it doesn’t affect any business operations and net effect of this transaction is zero.

JOURNAL ENTRY FOR CASH DEPOSIT INTO BANK 

BANK Account Debit

CASH Account Credit.

In this case Bank Account is personal account so debit is the receiver rule is applicable here. Cash is a real account, credit goes out rule applicable here.

In simple words, company deposit excess cash into bank. This kind of transactions take place on every day basis. Passing the journal entry include the following steps

Step 1: You need to check which bank you are depositing cash.

             It’s because companies having two to three bank

             accounts.

Step 2: You need to debit the particular bank account and credit  

              to cash account.

Step 3: Effect of this entry is it will increase the bank account               

              balance and decrees the cash balance.

CASH DEPOSIT INTO BANK EXAMPLE

ABC company deposit cash of ₹ 1,00,000/- into XYZ Bank.

We need to pass the following Journal entry for this transaction.

XYZ Bank Account debit for ₹  1,00,000

CASH Account credit for ₹ 1,00,000.

(Being cash deposited into XYZ Bank)

CONCLUSION

Dear reader in this article you get to know about Journal Entry for Cash Deposited into bank account. Hope you understood the things better. If you have any query regarding this article kindly comment below.  

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